47-61 King Street South Shields

Home , Byker, Newcastle upon Tyne, South Shields

PRIVATE CLIENT

100% PRIME FREEHOLD UNBROKEN RETAIL PARADE 47-61 KING STREET, SOUTH SHIELDS

INVESTMENT CONSIDERATIONS

■■ South Shields is an important administrative centre and popular seaside resort ■■ Home to one of the Country’s most important ports ■■ 100% prime retail location ■■ Well secured with an excellent tenant profile including Boots, Sports Direct, New Look, JD Sports and Argos ■■ The town’s retailing offer is set to benefit from the £100M South Shields 365 Master Plan over the next 5 to 10 years ■■ WAULT of 5.9 years to expiry and 4.1 years to break ■■ Total passing rent of £441,600 per annum ■■ Offers sought in excess of £4,500,000 (Four Million Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects anet initial yield of 9.2% assuming purchaser’s costs of 6.57%.

100% PRIME FREEHOLD UNBROKEN RETAIL PARADE A696 Cramlington

A696 A190

A19 47-61 KING STREET, SOUTH SHIELDS

A189 A193

Whitley Bay Newcastle A1056 A192 International Airport East North Brunton A191 Gosforth A1058

A19 North Gosforth North Shields A193 A1058 A696 South Tyneside Gosforth A188 A187 A69 A189 A186 A1 South A69 A6085 A167 Newcastle A191 Shields Upon Tyne A183 A1018 Hebburn A185 A193 Byker A186 A1300 A194 A695 A695 Jarrow A1300 Blaydon A695 South Gateshead Tyneside A184 A19 A694

A184 A1018

A194(M) A167 A692 LOCATION A195

A1231 South Shields is an important coastalA1 town and one of the region’s most A1231 Sunderland A6121 popular seaside resorts. The townJ64 liesWashington within the Tyne & Wear conurbation, A182 A1018 located at the mouth of the River Tyne. It has an impressive andA183 loyal resident population of 85,000 peopleA1(M) A195 within its primary catchment and a A694 A6121

wider Tyne & Wear population in excess of 1 million. A690 Stanley A693 A693 J63 A691 South Shields is the administrative and retailing centre of South Tyneside. It is A693 A691 strategically situated between a numberA183 of cities and towns including Newcastle A693 A167 A692 ( ) upon Tyne (12 miles), Gateshead (11A1 miles),M Washington (10 miles) andA19 A1018 Sunderland (7.8 miles). The town’s location means it is well connected, being situated close to the intersection of the A19 and A194 providing direct access to Newcastle upon Tyne to the west and Sunderland to the south. The town is also well connected by rail, with South Shields Metro Station providing regular services to surrounding towns including Newcastle upon Tyne, allowing onward travel to Manchester, Leeds, Edinburgh and London. Newcastle International Airport is easily accessible by road, only a 20 minute drive, or via the Tyne & Wear Metro. The airport provides regular domestic, European and international flights. Furthermore South Shields is home to one of the UK’s most important ports, the Port of Tyne. It is one of Europe’s major deep sea ports and deals with not only cruises and ferries but also container and conventional cargo, as well as car distribution.

RETAILING IN SOUTH SHIELDS South Shields has a loyal shopping catchment of 39,000 with a total in-store comparison retail expenditure of £207 million. The town has a retail floor space of approximately 610,000 sq ft with the pedestrianised King Street being the traditional and prime retail pitch within the town. King Street’s main population flow is between Market Square, on the east end of the street, and the South Shields Metro Link on the western end of the street. Key retailers in South Shield’s town centre include Debenhams, Next, River Island, Morrisons, McDonalds, Dorothy Perkins, Burtons, Poundland, Superdrug, Holland and Barrett and H Samuel. Source: Promis

100% PRIME FREEHOLD UNBROKEN RETAIL PARADE �

47-61 KING STREET, SOUTH SHIELDS

South Shields Metro Underground

MUSE DEVELOPMENT AREA

INVESTMENT IN SOUTH SHIELDS SITUATION DESCRIPTION South Shields benefits from significant public and private The property occupies the strongest trading position on the The subject property is a prominent modern retail parade of steel framed construction with brickwork sector investment. More recently this has included primarily prime retailing thoroughfare of King Street. This property is and stone cladding and comprises accommodation over basement, ground and first floors. the town centre, riverside and foreshore areas; growing the situated within the 100% prime retailing pitch within South The property was built in the 1990’s and provides one of the few purpose built modern retail town’s importance as a major commercial centre and tourist Shields and is strategically located on the busy pedestrianised parades in the town. The property comprises seven well configured retail units with ancillary �� destination. route between the�� Metro Station and the Market Square. accommodation at either basement or first floor. In addition the property benefits from a self- �� The town centre regeneration master plan is proposing The subject property has a dominant corner position on King Street contained service yard to the rear. The property totals approximately 41,637 sq ft (3,868 sq m). to enhance the retail offer by updating the aesthetics and and Russell Street and� benefits� from a return frontage� on Russell�� The� modern � construction� allows for flexible floor plates which suits modern retailer requirements. �� enriching the public realm. (See page 6). Street which is a busy�� ancillary�� route�� linking the bus station and the Unit 1 (Boots) provides ground floor sales with first floor storage. Unit 2 (Vodafone) offers a ground �� Metro Station. floor lock up shop. Units 3, 4, 5 and 7 (AG Retail, JD Sports, New Look) comprise ground floor Nearby retailers include H Samuel, Superdrug, B&M Bargains, sales and basement storage. Unit 6 (Sports Direct) provides sales at first floor with access off King WH Smith, Dorothy Perkins and Poundworld. Street. Unit 8 (Argos) offers ground floor sales accommodation with storage at first floor level.

100% PRIME FREEHOLD UNBROKEN RETAIL PARADE 47-61 KING STREET, SOUTH SHIELDS

TENANCY SCHEDULE

Unit Tenant Accommodation Size (NIA) ITZA Lease Start Lease Lease Break Lease Rent p.a Rent psf Comments Sq Ft Sq M Review End (ITZA)

Unit 1 Boots UK Limited Ground Floor Sales 3,553 330.1 1,438 21/07/14 21/07/19 20/07/24 £80,000 £10.77 61 King Street (ITZA £55.63) First Floor Storage 3,876 360.1

Unit 2 Vodafone Limited Ground Floor Sales 2,390 222.0 920 29/07/14 29/07/19 28/07/19 28/07/24 £50,000 £20.92 Void area* 59 King Street (ITZA £54.35) Unit 2 Vacant Vacant upper floors n/a n/a 59 King Street (Uppers) Unit 3 AG Retail Cards Ground Floor Sales 1,326 123.1 760 13/02/14 13/02/19 13/02/19 12/02/24 £50,000 £16.61 57 King Street Limited (ITZA £65.79) Basement Storage 1,684 156.4

Units 4/5 JD Sports Ground Floor Sales 3,227 300.0 1,518 18/08/14 18/08/19 17/08/26 £100,000 £15.03 53-55 King Street (ITZA £65.87) Basement Storage 3,425 318.2

Unit 6 Sportsdirect.com First Floor Sales 8,269 768.0 0 25/11/17 20/03/18 19/03/23 £65,000 Tenant has signed a new 5 year lease. 51 King Street Retail Limited 18 months rent free. Landlord to top up. Unit 7 New Look Ground Floor Sales 2,224 206.6 990 09/05/14 08/05/19 £36,000 £7.17 psf The unit was not on New Look’s closure 49 King Street Retailers Limited list and has been categorised as B2 as part of the company’s CVA, which is a Basement Storage 2,882 267.7 40% reduction in rent. Before reduction the rent was £61,000 pa. Unit 8 Argos Ltd Ground Floor Sales 4,306 400 1,808 25/12/14 24/12/19 25/12/19 24/12/24 £60,000 £6.83 47 King Street (ITZA £33.19) First Floor Storage 4,475 415.7

Sub-Station Northern Electric Plc 15/05/98 14/05/58 n/a

TOTAL 41,637 3,868 £441,600

*The uppers above Vodafone are not self-contained and they are essentially landlocked. There is a rates shortfall of £2,842.60 pa and service charge shortfall of £3,552.00 pa.

SERVICE CHARGE RENTAL COMMENTARY TENURE A service charge is in operation to cover the costs of At its peak the rental tone along prime King Street was approximately £80 per sq ft Zone Freehold. repairing and insuring the structure of the building A. Like almost all towns in the UK there has been a rental tone correction over the last few and the property’s common parts. The proposed years. Based on local agent opinion and historic lettings current Zone A in South Shields VAT service charge budget for 2018 is £62,610 +VAT, falls between £50-£65 psf. The latest letting within the parade was a renewal to Sports which equates to £1.50 per sq ft. There are two Direct in 2018, highlighting the retailer’s commitment to the pitch. We understand that the property is elected for VAT purposes and it is landlord annual service charge shortfalls: £3,552 anticipated that the sale will be treated as a Transfer of Going Concern. for the void demise (unit 2 upper floors) and £843.32 COVENANT INFORMATION as a result of Sports Direct service charge cap. EPCS Further details are available on request. The property is let to established tenants including Boots, JD Sports, Argos, Vodafone, Sports Direct and New Look, with 90% of tenants being rated better than Low Risk. EPCs for the property are available upon request.

100% PRIME FREEHOLD UNBROKEN RETAIL PARADE 47-61 KING STREET, SOUTH SHIELDS

SUBJECT PROPERTY

King Street

River Drive Interchange Square

Keppel Street King Street PHASE 2 Waterloo Vale Square Fowler Street

PHASE 3 East Street PHASE 1 Square New Barrington Street Square

Coronation Street

St. Hilda’s Square

Harton Ferry Street Quays

Coronation Street Harton Quay

Station Road

PHASE 1: Cultural centre and advanced market offering PHASE 2: A new central travel interchange PHASE 3: Improved retail and leisure offering

SOUTH SHIELDS 365 DEVELOPMENT In 2013 Muse Developments were selected to deliver South Tyneside Council’s As you can see in the Development Plan above phase 3 will involve developing ambitious South Shields 365 Masterplan over a five to ten year period. The plan a site directly adjacent to the subject property. It will aim to improve the retail and proposed a town centre redevelopment with a new retail quarter in the Fowler Street leisure offering in the town creating a new leisure site which will include a cinema. West area. At its completion the scheme will create a new cinema, library, retail Phase 3 will link through on the south side of King Street and parts of Chapter and leisure facilities as well as a quality hotel and new housing. The Council is also Row, Barrington Street and East Street. It is believed that the development will working with Nexus to bring improvements to the Metro system along have a positive effect on the subject property’s footfall with the development as a with a new transport interchange (Phase 2). whole aiming to enhance the Town Centre, improve connectivity and encourage Work on the first phase of the £100m regeneration Masterplan began in 2015 more visitors to shop and holiday in the town. with the completion of the ‘The Word’ (The National Centre for the Written Word) in 2016. Since then development has continued at a pace with work due to start on phase two of the scheme, transport redevelopment, this year.

100% PRIME FREEHOLD UNBROKEN RETAIL PARADE PRIVATE CLIENT

DATAROOM For access to the Allsop Dataroom please use the following link: https://datarooms.allsop.co.uk/register/SouthShields

PROPOSAL Offers sought in excess of £4,500,000 (Four Million Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects anet initial yield of 9.2% assuming purchaser’s costs of 6.57%.

For further information or to make arrangements for viewing please contact:

Liam Stray Alex Butler 020 7543 6769 020 7543 6722 [email protected] [email protected]

www.allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 04.18